Collaborative Consumption: The Future of Sharing Economy

Abstract

The marketing world is witnessing a transformation from an exclusive ownership-driven consumption to a sustainable shared consumption. The attitude of collective ownership toward the larger canvas in terms of environment, society and its well-being are realized by the empowered consumers today resulting in a drive toward collaborative consumption (CC). This shift is fueled further by technology and its influence on the digital consumers. In this chapter, the authors draw upon past research to explore the concept, discuss its dimensionalities, motives and consequences. With various service providers/brands venturing into the space of CC, this chapter will also bring in the practitioners’ perspective through multiple case examples. The chapter introduces the concept of collaborative consumption under the domain of sharing economy. Based on the existing research, the chapter covers the definition of collaborative consumption, the nature of collaborations and the process of it thereby. Demystifying the traditional ownership aspect toward collective ownership, the chapter also brings in the motivations of a consumer for CC: economic, social, environmental and hedonic utilities. We further discuss the dimensions and a triadic framework of CC (the consumer, the provider and the interface). Finally, the chapter investigates a few practical cases from different industries to augment the conceptual exploration. Sustainable and responsible consumption is the key marketing principle for tomorrow and CC is the key driver toward turning the vision into reality. The future of marketing lies in dismantling the consumers’ mind from ownership to collaboration. This essence of collective ownership and consumption applies equally to consumers, companies, brands and service providers. From a managerial viewpoint, this chapter provides ideas and pathways to market responsible and sustainable products/services.